HK/China Equity Long-Short

Osbert Tang, CFA

Osbert Tang is an equity analyst with over 20 years of experience with focuses on China transport, infrastructure, industrials and utilities sectors. He has been based in Shanghai since 2003, accumulated nearly 20 years of on-ground knowledge on the Chinese economy and financial markets, and has a wealth of contacts with China corporates and government entities. 

Osbert has received votes from top-tier institutional investors and has been a highly-ranked transport and infrastructure analyst in the Asiamoney, Institutional Investors and Greenwich surveys. In addition to his extensive experience with international investment banks including RBS, ABN AMRO (both served as Shanghai Chief Representative), Paribas Asia Equity, Maybank Kim Eng and DBS Securities, he has been a senior analyst with Moody’s Investors Service with focus on ratings of China infrastructure and related LGFV issuers. He has also worked in the area of strategic development at Sun Hung Kai Properties Limited. 

Osbert holds a BBA from the Chinese University of Hong Kong, an MBA from the University of Texas at Austin and a MSSc in Applied Psychology from the City University of Hong Kong. He was accredited with the CFA charter in 1997, and is a member of both British Psychological Society and Hong Kong Psychological Society.

China Rail: Implications of the Beijing-Shanghai High Speed Railway IPO

Beijing-Shanghai High Speed Railway IPO: A-Share IPO Price Fixed at Rmb4.88

Beijing-Shanghai High Speed Railway (601816 CH): Good FY19 Result Means Nothing for FY20

Equity Capital Markets

Beijing-Shanghai High Speed Ra / Equity Capital Markets

Beijing-Shanghai High Speed Ra (601816 CH)

<a href="https://www.smartkarma.com/entities/beijing-shanghai-high-speed-railway" target="_blank" data-smartkarma-citation="entities:28433:1" rel="noopener">Beijing-Shanghai High Speed Railway (1762168D CH)</a>, BSHR, is seeking an IPO in the Shanghai Stock Exchange. BSHR is the sole investor, developer and operator of the Beijing-Shanghai high speed railway which carried 192m passengers and achieved a profit of RMB10.2bn in FY18. The company plans to deploy the IPO proceeds to satisfy part of the RMB50bn consideration for its proposed acquisition of a 65.0759% stake in Beijing-Fuzhou Railway Anhui Company. Key positives are: 1.) established franchise with high and rising market share; 2.) growing profitability as it links Beijing and Shanghai; 3.) position as the key high speed railway investor; and 4.) first high speed railway listing with huge market capitalisation.Key negatives are: 1.) non-operator using entrusted management arrangement; 2.) limited pricing autonomy to offset rising costs; 3.) acquisition of loss-making Beijing-Fuzhou Railway Anhui Co., Ltd; and 4.) potential competition from the second Beijing-Shanghai high speed railway.

Beijing-Shanghai High Speed Railway (1762168D CH), BSHR, is seeking an IPO in the Shanghai Stock Exchange. BSHR is the sole investor, developer and operator of the Beijing-Shanghai high speed railway which carried 192m passengers and achieved a profit of RMB10.2bn in FY18. The company plans to deploy the IPO proceeds to satisfy part of the RMB50bn consideration for its proposed acquisition of a 65.0759% stake in Beijing-Fuzhou Railway Anhui Company. Key positives are: 1.) established franchise with high and rising market share; 2.) growing profitability as it links Beijing and Shanghai; 3.) position as the key high speed railway investor; and 4.) first high speed railway listing with huge market capitalisation.Key negatives are: 1.) non-operator using entrusted management arrangement; 2.) limited pricing autonomy to offset rising costs; 3.) acquisition of loss-making Beijing-Fuzhou Railway Anhui Co., Ltd; and 4.) potential competition from the second Beijing-Shanghai high speed railway.

Beijing-Shanghai High Speed Railway IPO: Initial Thoughts on the A-Share Listing